Crypto News– Digital Currency Group (DCG) Unveils New Proposal to Potentially Restore All Cryptos for Gemini Earn Users Amid Genesis Bankruptcy Proceedings – The Latest Chapter in the Ongoing Crypto Power Struggle Between Barry Silbert’s Empire and Counterparties.
Gemini Earn Users Might Retrieve Their Entire Crypto Holdings Under New DCG Blueprint
DCG, which found itself entangled in the crypto credit turmoil that swept the market last year, has presented a creditor agreement as part of Genesis Global’s bankruptcy proceedings. This agreement could offer “a 70-90% recovery for all unsecured creditors, with a substantial portion of the recovery in digital currencies,” according to the company.
The filing, submitted by DCG on a recent Wednesday, outlines the recovery plan formalized in August. Notably, this is the second agreement in principle submitted, with the prior proposal including DCG equity as an option. The new deal also offers creditors the opportunity to benefit from crypto appreciation, potentially earning them “$85,000 for BTC and $8,500 for ETH.”
In a statement, DCG described these return rates as “remarkable outcomes” within the context of any Chapter 11 liquidation case, especially given the inherent volatility of the cryptocurrency industry.
DCG has garnered significant attention this year due to the ongoing negotiations between its subsidiary Genesis, which filed for bankruptcy protection at the beginning of 2023, and its primary creditor, Gemini. The dispute between the two entities originated when Genesis suspended withdrawals from its retail lending program Earn.
This disagreement escalated when Gemini’s co-founders, Tyler and Cameron Winklevoss, accused Silbert and Genesis of deceiving investors in a lawsuit filed in July. These allegations subsequently triggered investigations into DCG by the U.S. Federal Bureau of Investigation and the Securities and Exchange Commission, as reported by Bloomberg News.